Why

This is a discussion on Why within the General Trading Chat forums, part of the Reception category; Originally Posted by superfly
I like the way illiquid phrases common issues.
The full text im refering to:
Like I've ...

I like the way illiquid phrases common issues.
The full text im refering to:

Like I've said before, I've seen as much so-called wisdom over the years that I've eventually learned to hold as inviolate truth, as that which should be thrown out with yesterday's garbage. Yet why does the eventual accumulation of pertinent knowledge translate so slowly into one's trading results? If we are capable of weeding out the good stuff from the bad, why doesn't the good stuff just take over and guide us directly towards success?

Aside from the fact that I might just be a dumbass, one thing I've figured out is that the distance between the brain and the finger might not be so close as you'd think -- if you're not careful. I know I'm not the only trader who has a tendency to repeat the usual mistakes, or variations of same, despite having berated myself 10 times in the previous week to make an effort not to do it again. My contention is that old habits die hard. Real hard. And only if you go out of your way to kill them outright.

Thank you. But, again, "wisdom" is no different from "knowledge" in this regard, i.e., it's still just information, though perhaps wearing a better-quality suit. For the individual, the wisdom must be internalized and implemented in order to become anything more than good intentions (e.g., do unto others . . . ). Difficulties in doing so may stem from emotional problems, the "ego" to which so many people refer, conceptual and/or perceptual difficulties, simple intelligence, or a variety of other factors.

Why does the eventual accumulation of pertinent knowledge translate so slowly into one's trading results? If we are capable of weeding out the good stuff from the bad, why doesn't the good stuff just take over and guide us directly towards success?

Because it takes a huge amount of hard work and the help of other pioneers to achieve a ‘tipping point’ in trading whereupon mastery is attained. It is an iterative process and there are few shortcuts. Even Einstein had to undertake this ‘learning curve’.

Einstein's mother was concerned about his slow development as a child. His elementary school teachers thought that he was a foolish dreamer. His Uncle mentored him from the age of 12 and he increased his knowledge in calculus & physics. A trader would learn technical and fundamental analysis during the early stages and use a mentor to help with the psychological and financial development necessary to achieve mastery.

Eventually dropping out of high school, Einstein had to take special exams which he failed. After graduation, he couldn't get a job anywhere. In 1901, at the age of 22 he got a job at a Swiss patent office, and earned just enough money so that his parents didn't have to support him.

In 1905, Einstein examined the phenomenon discovered by Max Planck, according to which electromagnetic energy seemed to be emitted from radiating objects in quantities that were ultimately discrete. The energy of these quantities--the so-called light-quanta--was directly proportional to the frequency of the radiation. But it wasn’t until 1911 that Einstein was able to make preliminary predictions about how a ray of light from a distant star, passing near the Sun, would appear to be attracted, or bent slightly, in the direction of the Sun's mass. In 1915 he published General Relativity which was the ‘Holy Grail’ linking mass and energy.

So it had taken Einstein 24 years of dedicated work to achieve mastery. And that mastery was expressed in the simplicity of e=mc2. Trading is like this.

Because it takes a huge amount of hard work and the help of other pioneers to achieve a ‘tipping point’ in trading whereupon mastery is attained. It is an iterative process and there are few shortcuts. Even Einstein had to undertake this ‘learning curve’.

Einstein's mother was concerned about his slow development as a child. His elementary school teachers thought that he was a foolish dreamer. His Uncle mentored him from the age of 12 and he increased his knowledge in calculus & physics. A trader would learn technical and fundamental analysis during the early stages and use a mentor to help with the psychological and financial development necessary to achieve mastery.

Eventually dropping out of high school, Einstein had to take special exams which he failed. After graduation, he couldn't get a job anywhere. In 1901, at the age of 22 he got a job at a Swiss patent office, and earned just enough money so that his parents didn't have to support him.

In 1905, Einstein examined the phenomenon discovered by Max Planck, according to which electromagnetic energy seemed to be emitted from radiating objects in quantities that were ultimately discrete. The energy of these quantities--the so-called light-quanta--was directly proportional to the frequency of the radiation. But it wasn’t until 1911 that Einstein was able to make preliminary predictions about how a ray of light from a distant star, passing near the Sun, would appear to be attracted, or bent slightly, in the direction of the Sun's mass. In 1915 he published General Relativity which was the ‘Holy Grail’ linking mass and energy.

So it had taken Einstein 24 years of dedicated work to achieve mastery. And that mastery was expressed in the simplicity of e=mc2. Trading is like this.

Yes, exactly, very well explained.

However you forgot to mention that in trading, as in everything requiring endeavour, also, e= mc2.

Why does the eventual accumulation of pertinent knowledge translate so slowly into one's trading results? If we are capable of weeding out the good stuff from the bad, why doesn't the good stuff just take over and guide us directly towards success?

Everyone trades the markets according to their beliefs.

Acquiring knowledge builds interest, but does not necessarily change those original beliefs.

You can tell a trader over and over again that they need to change certain trading habits to become successful, but unless that trader can incorporate what you are telling them into their belief system, they will not change the habits. People's minds become programmed in certain ways and it can be a difficult task re-programming.

Once people develop ideas and beliefs about something, it is very difficult to change them.

Why does the eventual accumulation of pertinent knowledge translate so slowly into one's trading results? If we are capable of weeding out the good stuff from the bad, why doesn't the good stuff just take over and guide us directly towards success?

Trading has a very long positive reinforcement cycle. Often you need to do the 'good stuff' for months on end to make money.

Most people expect to do the right thing and come out permanently ahead after 5 or 10 trades, in this business you might still be down or flat after 50 or a 100 trades even though you might have been up after the first 10 trades.

Trading has a very long positive reinforcement cycle. Often you need to do the 'good stuff' for months on end to make money.

Most people expect to do the right thing and come out permanently ahead after 5 or 10 trades, in this business you might still be down or flat after 50 or a 100 trades even though you might have been up after the first 10 trades.